Perth Property Market Resilient to Declining Values

CoreLogic’s Home Value Index reveals Perth dwelling values fell by 0.4% in September, a much more moderate value reduction in comparison to other capital cities, and at a time when the rate of decline in housing values across Australia is softening. Perth remains in a much stronger position than other cities, and is unlikely to see the serious value declines experienced in the eastern states.

The latest Housing Affordability Report, released by the Real Estate Institute of Australia, show’s the proportion of a families weekly income required to meet average loan repayments in Western Australia is only 28.2%. This is much lower than the national rate of 38.4% and second only to the Northern Territory.

Additionally, according to the ABS lending indicators released this month, the average loan amount for owner-occupiers in WA is $469,094, much lower than the national average of $589,141. Although Tasmania and South Australia have smaller loan amounts, more than 32% of household income is required to service those loans in both states. What does that mean for Perth homebuyers? Even with interest rate rises, Perth remains one of the most affordable capital cities in the country.

First home buyers are capitalising on the affordability of Perth’s property market, with 34.4% of all housing finance approvals being for first home buyers according to ABS data, the largest proportion in the country. Despite housing finance approvals falling nationally in August, WA once again bucked the trend, with both owner occupier and investor housing loans increasing. High buyer demand and low property availability are key elements of Perth’s stable market, and there’s no indication of these easing.

Not only were there almost 2% less properties listed for sale in September than the previous month, these are still being snapped up quickly. In a balanced market, a property should take approximately 35 days to sell. In September, on average, Perth properties sold in 15 days, further propelling buyer competition and keeping prices high.

Source: CoreLogic

Perth Suburbs Moving Up

In the face of a slight downturn in housing values for Perth during September, many suburbs still recorded price gains. Singleton was the standout for the month, with prices rising 3.9% to $535,000. Staying on the coast, Ocean Reef recorded the second highest increase, growing 2.8% to $915,000.

Beckenham and Bibra Lake both experienced 2.7% increases over September, climbing to $467,500 and $610,000 respectively. South Perth surged 2.5% to $1.55 million.

Melville, Falcon and Safety Bay also performed well for September.

Property Spotlight

Our team has been busy helping our clients find their dream homes during September. Here’s a small sample of the properties secured during the month:

What’s Happening at Resolve?

At Resolve Property Solutions, our team is working harder than ever to source and inspect as many suitable properties as possible for our clients. As well as securing properties which meet our clients brief and budget, we also search for off-market opportunities where possible to provide more options, and always ensure they are buying the right property at the right price. Stock levels are at record lows, which is making it even more challenging to find the right property.

Now more then ever it is important to get an accurate and up to date appraisal for your property purchase and avoid over paying, with some segments and price points in the market showing less demand. Newer and renovated properties are in high demand and routinely sell above asking price.

During the month of September, we purchased four properties for our clients, all of these on market. This highlights just how low the levels of available stock are and how tight Perth’s property market currently is.

If you would like to discuss your property requirements and strategy with our Buyers Agents, book your free consultation here.

We are here to help you on your property journey and ensure you are buying the right property, in the right location for the right price!